IPO Analysis: Religare Enterprises Ltd - Subscribe

Religare Enterprises Ltd

Price Band (Rs) 160-185, Subscribe

 Religare Enterprises Ltd (REL) is a financial services provider promoted by Ranbaxy group. REL is a holding company of 11 subsidiaries, which are engaged in offering diverse bouquet of services ranging from equities, commodities, insurance broking, wealth advisory, portfolio management services, personal finance services, investment banking and institutional broking.  Valuations look attractive at P/E of 31.4-36.3x FY07 EPS of Rs5.1 when compared with the industry average. Given well-recognized brand name, strong retail distribution network and a strong growth history, we recommend Subscribe to the issue from a long-term perspective.

ä       Retail branch network across pan India.

ä       Well diversified product portfolio catering to retail, high networth individual, and institutional clients.

ä       Competitive player with recognized brand name.

ä       Aggressively tapping the online trading opportunity.


Click below for IPO Analysis on Religare Enterprises Ltd



Warm Regards,

  India Infoline Research Team


Indian Hotels Company Ltd (IHCL) (Q2 FY08): BUY

Indian Hotels Company Ltd (IHCL) (Q2 FY08)

CMP Rs144, BUY

Target price Rs160, Upside 11.2%


ä       Sales growth of 15.7% yoy lower than our estimates due to lower room availability; ARR growth remains healthy

ä       Reduction in staff costs and other expenditure lead to a 420bps yoy improvement in operating margins

ä       Higher interest cost and tax outgo erode operational improvements; net profit up 16% yoy

ä       Earnings growth of 19.6% over FY07-FY09E; maintain BUY with a target price of Rs160, based on 18x FY09E EPS of Rs8.8.


Click below for the detailed update on Indian Hotels Company Ltd



Warm Regards,


India Infoline Research Team


Reliance Mutual fund has launched a Gold ETF -Exchange Traded Fund

Reliance Mutual fund has launched a Gold ETF -Exchange Traded Fund

What are Exchange Traded Funds…
Exchange Traded Funds are passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index. These schemes are listed on the stock exchange and therefore have the flexibility of trading like a share on the stock exchange.
It can also be looked as a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.

Introducing Reliance Gold Exchange Traded Fund…. RGETF as they will be called

Reliance Gold Exchange Traded Fund (RGETF) is an open ended Gold Exchange Traded Fund which will track the performance of Gold Bullion. The units issued under the scheme will represent the value of gold held in the scheme. It is designed to provide returns that, before expenses, closely correspond to the returns provided by domestic price of Gold.

Benefits of investing in Reliance Gold Exchange Traded Fund
Safety & Security

Zero concerns about physical security, theft or adulteration when faced with the tasks of custody and spot transactions.

Safeguard in the form of electronic mode in case of unforeseen circumstances where you have lost all the physical wealth

Long Term Commitments

A cost effective and convenient way to invest in gold through an instantaneous exposure to a physical asset viz gold. For example it can help
accumulate gold for your daughter's wedding

Transparency & Liquidity

Its units can be traded like a share and therefore it provides the ability to buy and sell them quickly at the ruling market price and therefore highly liquid


An efficient diversification for the portfolio of the investor

Cost Effective

The expenses incurred in buying and selling units and the schemes ongoing expenses will be less than the costs associated with buying

Indian Scenario
There is no doubt about the popularity & demand of gold in a country which exceeds 1000 tonnes of this metal.
They buy it for jewelry, contingencies, gifting, wedding, mortgage requirement etc.
Gold has ritual, religious, sentimental values attached to it, so it cant be substituted and demand is more or less indispensable.
However apart from jewelry purpose one does not need it in a physical form.
The per capital gold consumption is 0.7 grams, half that of the US and one third of the Middle East that is likely to go up.

Rationale for investment in RGETF vis a vis other forms of investments in Gold

Form Demat Form Bar or Coin Bar or Coin
Security Taken care by Fund Investor's Concern Investor's Concern
Transparency Very High Very Low High
Impurity Risk Nil High Nil
Pricing (for retail investors) Transparent. Will be traded at NSE Neither standard nor transparent. Not standard. Huge Markup, 10-15% ideally
Selling Back Sell back on exchange Conditional and uneconomical Restricted
Bid Ask Spread Very Low Very High Can't Sell back
Denomination 1 gram and in multiples of 1 gram Available in Standard denomination Available in standard denomination.
Wealth Tax No* Yes Yes
Short-term Capital Gains Tax Applicable before 1 year Applicable before 3 yearsApplicable before 3 years
Long-term Capital Gains Tax Applicable after 1 year Applicable after 3 years Applicable after 3 years

Min Investment is Rs 5000/-

For further details please go thru the FAQs and attached presentation

Thanks and regards
Pavan Mahtani
Reliance Money

Voltas Ltd: Still steam left

Voltas Ltd: Still steam left

CMP Rs158, BUY

Target price Rs190, Upside 20%

ä Robust order backlog provides strong visibility

ä Rising industrial capex

ä Margin sustainability will be a key

ä Earnings CAGR of 41.2% over FY07-09E

Voltas remains one of our preferred plays in the engineering sector with strong visibility, rising industrial capex, healthy return ratios and improving margins. At CMP of Rs158 the stock trades at 19.8x FY09E EPS and 16.1x FY09E EV/EBIDTA. We believe that earnings CAGR of 41% over FY07-09E justify current multiples at which it trades. We recommend a BUY with target price of Rs190, representing an upside of 20% from the current levels.

Click below for detailed report on Voltas Ltd.


Warm Regards,

India Infoline Research Team

Reliance Industries (Q2 FY08) - Much stronger than expected: BUY

Reliance Industries (Q2 FY08): Much stronger than expected

CMP Rs2,575,  BUY

Target price Rs2,757,  Upside 7.1%



ä       Refining segment reports robust revenue growth and margin expansion on higher throughput, and record GRMs of US$13.6/bbl.
ä       Expansion in petrochemical margins a positive surprise.
ä       Firm refining margins and commencement of production of gas from KGD6 in Q2FY09 to drive future growth.
ä    &nbsp ;  Formula for gas pricing resolved, a sigh of relief.
ä       15 more prospects identified in deeper areas of the block to explore upside potential.
ä       We recommend a BUY with a sum-of-parts target price of Rs2,757.


Click below for Result Update on Reliance Industries



 Warm Regards,


India Infolin e Research Team



Tata Consultancy Services Ltd (Q2FY08): BUY

Tata Consultancy Services Ltd (Q2FY08)

CMP Rs1,065,  BUY

Target price Rs1,237,  Upside 16.2%


ä        Q2 results were ahead of our expectations especially on the revenue front.

ä       Dollar revenue growth was robust at 10.8% qoq and pre-exceptional profit was up 7% qoq despite lower other income and higher taxes.

ä       Fourth successive quarter of stronger performance than Infosys.

ä        We upgrade EPS estimates by 3-4% for FY08 and FY09 and maintain positive outlook with 8-10 month price target of Rs1,237.


Click below for the detailed quarterly update on TCS



Warm Regards,


India Infoline Research Team


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